Multi-Year Tariff Order (MYTO) for the Band “A” customers, the Nigerian Electricity Supply Initiative (NESI) seems to have beaten more than it can chew.
Its regulator, the Nigerian Electricity Regulatory Commission (NERC) examined over 3,000 feeders and sifted out about 481 feeders to serve the 15 per cent of the customers who enjoy a minimum of 20 hours daily electricity supply, reports The Nation.
Consequently, the Commission’s Vice-Chairman, Dr Musilu Oseni, on April 3 broke the news to reporters in Abuja that it has approved a tariff of N225/kwh from its previous N68/kwh for the band.
But how far has the NESI fared with the new tariff after its approval?
At the take-off of the new rate, most customers who vented some electricity units cried out that the Abuja Electricity Distribution Company (AEDC) captured them among the premium Band A.
They only got one-third of their previous units for the same amount they had always bought. Through all available communication media, they were quick to besiege the DisCo and NERC with a deluge of complaints.
It was an embarrassment of sorts to both the Commission and the DisCo. Consequently, 48 hours later, NERC fined AEDC N200 million for violating the order by extending the rate to every other customer, irrespective of their band.
The Commission’s management has said: “AEDC has been fined ₦200 million for failure to comply with the prescribed customer band classifications for the tariff billing.”
NERC further explained that the decision follows a detailed review and customer feedback, revealing that AEDC had applied the new tariff to all customer bands, contrary to the Order designed to ensure fair billing practices.
NERC insisted that “AEDC is, therefore, mandated to: a. Reimburse all customers in Bands B, C, D and E respectively that were billed above the allowed customer categories/tariff bands provided in the Order.
b. “Reimburse, through the provision of the balance of customer tokens that the affected customers would be entitled to receive at the applicable rates and all token reimbursements shall be issued to the affected customers by April 11 2024.
c. “Pay the sum of ₦200 million as a fine for the flagrant breach of the Commission’s Order.
d. “File evidence of compliance with the directives in a and c with the Commission by April 12 2024.”
NERC insisted that it was also part of its responsibility to protect consumer rights and ensure equitable practices within Nigeria’s electricity sector.
In the next few days, instead of the expected power, the DisCos churned out a litany of apologies for the failure to meet their contractual electricity supply.
For instance, Port Harcourt Electricity Distribution Company (PHED) expressed its apologies to customers for the supply shortfall for the contractual hours on April 7 and 8, 2024. The energy distributor, in the veiled message, blamed it all on the Transmission Company of Nigeria (TCN). It informed the customers to “kindly note the current service shortfall experienced in areas where we did not meet up with the contractual supply hours on April 7 and 8 of 2024.
“Our team is actively working with the Transmission Company of Nigeria (TCN) to address these challenges and restore regular power supply to the affected areas promptly
“We apologise for any inconvenience caused and appreciate your patience during this time.”
Similarly, the Ibadan Electricity Distribution Company (IBEDC) said TCN was accountable for its failure to meet its band “A” target. In a Public Notice to its customers, the energy distributor management said: “Dear esteemed Customers, We apologise for our inability to deliver the estimated hours of supply in your feeders. This was due to the following: TCN System Outages and Tripping on IBEDC feeders. We remain committed to supplying the estimated hours of supply.”
The public notice, however, unsettled the TCN which swiftly issued a rejoinder, taking an exemption to the IBEDC woes.
Its Public Affairs Manager, Ndidi Mbah said the IBEDC public notice was incorrect. She said the Transmission Company of Nigeria hereby notes that the publication circulated by IBEDC on April 9 2024, which stated that TCN is responsible for its failure to “deliver estimated hours of supply to your feeder,” due to System Outages and Tripping on TCN’s feeders is incorrect.
“TCN took time to investigate the allegation and wishes to set the record straight and hereby notes as follows:
1. That IBEDC’s publication on April 9 2024, across their social media platforms, attributing their inability to deliver estimated hours of supply to its customers is incorrect.
2. That the feeders mentioned in the publication are NOT within the TCN network. This means that most of the listed feeders in the publication are 11kV operated by IBEDC and completely outside TCN’s Operational Control and in IBEDC’s network.
3. That the reasons given for the outage on IBEDC 11kV and 33kV are earth/over current faults, which have no bearing on TCN’s frequency control operations.
4. That the statement by IBEDC has been verified by TCN’s regional management in Osogbo in conjunction with IBEDC officials themselves and has been proven to be false, necessitating necessary corrections being made.
“While TCN sees this misinformation of IBEDC as a ploy to undermine and mislead the public against regular power supply, we remain focused on supporting the government’s move towards a more robust and efficient power supply.
“Consequently, TCN assures the public of its commitment to continue to work hard to effectively transport the entire bulk electricity received from the generating companies to distribution load centres nationwide.”
Besides, the Benin Electricity Distribution Company (BEDC) apologised to its customers that the transmission company was responsible for its renege of the promise of service delivery.
Again, TCN issued a rebuttal following the publication on BEDC’s social media platform on April 12 2024, on its inability to supply 20 hours of power supply to its band A customers. We hereby note that BEDC attributed this to tripping due to an earth fault at Amukpe and tripping due to an XLPE cable puncture at Effurun, both TCN substations. According to the TCN spokesperson, the BEDC was not correct.
Mbah said: “The incorrect attribution of these faults to TCN is clearly shown in the table on that release by IBEDC. For clarity, we note that on April 11 2024, the Amukpe 33kV feeder tripped at 2:31 p.m. and was restored by 4.08 p.m. within one hour and 54 minutes.
“The cause of the outage, which was clearly under BEDC purview, was an instantaneous earth fault caused by stormy weather, which was restored on trial reclosure after the rain had subsided.
“Still, on April 11 2024, Effurun 33kV feeder tripped at 12:25 p.m., and it is still out. The cause of the tripping was an earth fault on the outgoing feeder upriser, also from the BEDC DISCO end. “This report is to set the records straight and to appeal that facts be stated as they are for the benefit of all.”
The aforementioned examples are to deliberately bring to the fore the issues that have permeated the NESI since the approval of the 2024 Supplementary MYTO on April 3, 2024. It has largely been characterised by a devotion of negative energy to cleverly present reasons for failure instead of intensifying efforts at meeting the Band “A” electricity demand and surpassing it.
Ordinarily, the target was to upgrade more customers from the lower bands to the premium Band A. But having test-run phase one, which the Minister of Power, Chief Adebayo Adelabu described as a pilot project, there is the propensity to downgrade more customers from “A” to “B” than upgrading them from “B” to “A”. The reason is that the NESI cannot sustain the essence of the band “A” customers.
The weakness of the grid is evident in its performance since the take-off of the new MYTO.
On April 8, 2024, it was reported that despite the new which adjusted the rate of the band “A” customers from N68.9 per kilowatt hour to N225KWh, the TCN sent out 3,009MW to the 11 electricity DisCos at 17:39 hour on Sunday, April 8, 2024, at 17:39.
Its Independent System Operator made this known on its load profile platform, which The Nation sighted.
The kernel of the upward tariff adjustment is that the band is guaranteed a minimum of 20 hours of supply daily, owing to the resultant increased revenue from improved service.
Yet, in terms of generation of the same day, the System Operator added in its “Hourly Generation by Generation Companies GenCos,” at 15:00 hour on the same day was 3,370MW from 16 companies.
The data showed that Dandikowa and Delta Gas generated 0MW.
According to the TCN, the SO sent out 4,045.17MW to 11 DisCos on April 6 2024, and the GenCos produced an average of 4,045MW on the same day.
The TCN further noted that on April 5 2024, the SO sent out an average of 4,066MW to the 11 DisCos. It also noted that the GenCos produced an average of 4,123MW on the same day.
Issues in the industry are encompassing. Where the GenCos are not grappling with worn-out plants owing to indiscriminate switch on and off for fear of grid collapse, the TCN is battling to make up for the lack of a spinning reserve and Supervisory Control and Data Acquisition (SCADA).
On the other hand, the DisCos have deliberately refused to invest in their facilities due to the annoyance that the government prevented them from collecting a cost-reflective tariff. Some of the customers, on the other hand, have settled for energy theft. The theft is likely to hit a new dimension in the days to come as more premium customers must access electricity at all costs even when they cannot afford it.
Already, the National Union of Electricity Employees (NUEE) has urged the government to withdraw the new tariff because it will culminate in an increase in the cost of goods.
Twelve days after the April 2024 supplementary Multi-Year Tariff Order (MYTO) came into force, the grid has demonstrated a likelihood to snap if the operators fail to reinforce it with virile equipment and efficient management rather than resorting to the blame game.
